Phillips 66 (NYSE:PSX) reported fourth-quarter earnings that surpassed expectations, driven by record performance in its midstream and refining segments even as it navigates the costly wind-down of its Los Angeles refining operations.
The Houston-based energy giant posted net income of $2.9 billion, or $7.17 per share, for the final three months of 2025.
When adjusted for one-time items, earnings stood at $1 billion, or $2.47 per share.
These results included a $239 million pre-tax charge for accelerated depreciation related to the Los Angeles Refinery.
The company’s midstream unit reached a significant milestone, achieving record Natural Gas Liquids (NGL) transportation and fractionation volumes exceeding 1 million barrels per day (MMBD) for each category.
Refining operations remained a pillar of strength, with the company reporting a record clean product yield of 88% and a crude capacity utilization rate of 99%.
This operational efficiency helped generate $2.8 billion in net operating cash flow during the quarter.
In a move that signaled disciplined balance sheet management, Phillips 66 reduced its total debt by $2 billion, ending the year with $19.7 billion in outstanding obligations.